Stock Market Daily Updates 9 Oct 2020-Nikhil Bhatt | Research Analyst – SEBI

Dear Trader…

The bulls continued to dominate as the benchmark indices registered strong gains led by supportive global cues in nearly 8 months as on optimism that banks and finance companies would announce encouraging results for the quarter ended September, in addition to an improvement in the domestic services PMI.

Friends, we seen in September, that Equity and equity-linked schemes witnessed a net outflow of Rs 734 crore compared with an outflow of Rs 4000 crore in August, according to data released by the Association of Mutual Funds in India. Contributions through systematic investment remained flat at Rs 7788 crore over the previous month in September.

Concerned about the economy with the possibility of keeping interest rates unchanged in the decision to be announced on October 9, 2020, after the central government’s recent meeting with the states in India postponed the decision on massive borrowing and now the Reserve Bank of India’s Monetary Policy Meeting (MPC) committee will be announced on August 9, as well as the Indian stock market keeping an eye on global markets based on the growing cases of Covid-19 and US-China relations.

Markets will first react to the Tata Consultancy Services posted a net profit of Rs 7475 crore for the second quarter ended September 30, 2020 and the company announced a Rs 16,000 crore share buyback at Rs 3,000 per share. A tumultuous rally in IT stocks saw a rally in the Indian stock market a decisive breakout above 11800 in Nifty would further fuel the rally else some profit-taking can’t be ruled out.

Our markets have continued with the ongoing momentum to add more gains to the recent rally, the index heavyweights have led the charge one by one wherein the IT giants took the lead the index higher. However, the market breadth showed a bit divergence as the number of stocks declining outnumbered the advances.

The overbought momentum readings on the lower time frame chart and divergence in the broader markets indicates stock specific action and thus, traders should be selective in stock picking.

Considering the volatile nature of markets with mixed technical signals on charts it looks prudent on the part of traders to remain neutral till weakness in the market are confirmed.

The overbought momentum readings on the lower time frame chart and divergence in the broader markets indicates stock specific action and thus, traders should be book partial profits after the recent rally and wait for any dip to re-enter in the index. Stocks, on the other hand, are offering opportunities on both sides so plan your trades accordingly.

The immediate support for the Nifty future are placed around 11733 and 11676 points whereas resistance is seen around 11909 -11933 points.

Dear Traders…. For the Trading Idea Are:

Ø Nifty Future opened @ 11864 as on 09.10.2020

For Intraday, Nifty Future has resistance at 11888 – 11909 Point; above which other resistance levels are at 11919 – 11930 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 11833 – 11808 Point; below11808 Point, other support levels are at 11777 – 11760 Point.

I am positive for the next bullish trend only above @ 11919 Point but be with the trend. Let the market decide further moves. As we are saying from many days, Buying is suggested in falls only…and it’s still a better strategy in the given Scenario

Regarding Long term positions, it is preferable to remain cautious now

If Nifty Future crosses @ 11919 Point, again then the upper side target is quite high and it may touch @ 11930 Point in the short term

Ø Bank Nifty Future opened @ 23250 as on 09.10.2020

For Intraday, Bank Nifty Future has resistance at 23303 – 23373 Point; above which other resistance levels are at 23404 – 23444 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 23188 – 23088 Point; below23088 Point, other support levels are at 22979 – 22888 Point.

I am positive for the next bullish trend only above @ 23444 Point but be with the trend. Let the market decide further moves. As we are saying from many days, Buying is suggested in falls only…and it’s still a better strategy in the given Scenario

Regarding Long term positions, it is preferable to remain cautious now

If Bank Nifty Future crosses @ 23444 Point, again then the upper side target is quite high and it may touch @ 23474 Point in the short term

Ø Trading Idea for the derivative stocks….

Ø HDFC LTD FO @ RS 1954

Positive Trend @ Rs 1954 / 1944 with Stop loss of Rs @ 1930 for the target near @ Rs 1972 – 1980 in short term

Ø AURO PHARMA FO @ RS 844

Positive Trend @ Rs 844 / 828 with Stop loss of Rs @ 819 for the target near @ Rs 860 – 868 in short term

Ø CIPLA LTD FO @ RS 816

Positive Trend @ Rs 816 / 803 with Stop loss of Rs @ 797 for the target near @ Rs 833 – 840 in short term

Ø AXIS BANK FO @ RS 454

Positive Trend @ Rs 454 / 440 with Stop loss of Rs @ 433 for the target near @ Rs 467 – 474 in short term

Ø ACC LTD FO @ RS 1524

Negative Trend @ Rs 1524 / 1547 with Stop loss of Rs @ 1560 for the target near @ Rs 1508 – 1497 in short term

Ø HDFC BANK FO @ RS 1196

Negative Trend @ Rs 1196 / 1212 with Stop loss of Rs @ 1220 for the target near @ Rs 1180 – 1173 in short term

Ø TECHM FO @ RS 863

Negative Trend @ Rs 863 / 888 with Stop loss of Rs @ 898 for the target near @ Rs 848 – 840 in short term

Ø WIPRO LTD FO @ RS 363

Negative Trend @ Rs 363 / 373 with Stop loss of Rs @ 380 for the target near @ Rs 350 – 343 in short term

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